CYPRUS
COMPANY
FORMATION

Incorporating your business in Cyprus offers multiple advantages to all types of business structures and industries as Cyprus has the lowest overall taxation in the EU at just 12.5%

 

There is an excellent double tax treaty network of Cyprus with more than 40 countries. However there are plenty of exemptions which some companies will find beneficial and zero withholding tax for shareholder dividends and creditors outside of Cyprus.

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ANNUAL FILING REQUIREMENTS

 

A company's formation documents and its annual return must be filed in Greek, as well as the company’s accounts when these need to be filed.

 

Every company must complete an annual return within a period of 42 days from the date of its Annual General Meeting and must file immediately with the Registrar of Companies a copy of the annual return, signed by a director and the company secretary.

 

The annual return filed with the Registrar of Companies must be accompanied by the full set of financial statements.

 

 

TAXATION

 

A Cyprus Ltd company that is managed and controlled in Cyprus will be considered as a tax resident company. In this case the majority of directors should reside in Cyprus and Board Meetings should be held in Cyprus. Cyprus resident companies are subject to corporation tax at the rate of 12.5%.

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No withholding tax on dividends distributed to non-resident shareholders of Cyprus Companies and no withholding tax on interest paid by a Cyprus Company to non-resident creditors.

 

Cyprus has entered tax treaties with over 40 countries. In addition, as an EU company, it is entitled to the benefits of the EU Parent-Subsidiary directive and the EU Interest and Royalty directive in relation to withholding tax exemptions.

 

To find out more about how setting up a Cyprus company can benefit your business, contact us today